Managing VAT Tax

Countries other than the U.S. charge a VAT (Value Added Tax) tax rather than the U.S. sales tax. VAT tax is a European sales and purchase tax that is collected and paid by the organizations with a turnover greater than £30,000 (in the United Kingdom). ThreeSixty maintains the VAT tax categories and percentages over time. Since tax liabilities are owned by the financial company, they must be defined by company to associate a company liability account.

To add a new VAT tax country:

1. From the Order Settings page, select Manage VAT Tax.
   The Manage VAT Tax Countries page displays.
   
2. To create a new VAT tax country, select New VAT Tax Country.
   The Add New VAT Tax Country page displays, as shown below.
   
   1. Select a Financial Company from the drop-down.
   2. Select a Country from the drop-down.
   3. Select a VAT Category from the drop-down.
3. To continue defining VAT tax, select Save and Manage VAT Tax.
   1. Alternatively, select Save to save and return to the Manage VAT Tax Countries page.

To define VAT tax: 

1. From the Manage VAT Tax Countries page, select Manage VAT Tax from the contextual menu within the grid.
   
   Alternatively, when defining a new sales tax country, select Save and Manage VAT Tax.
   The VAT Taxes page displays.
   
2. Select + New VAT Tax.
   The Add New VAT Tax page displays.
   
   1. Enter the VAT Percent.
   2. Search for and select a Liability Account associated with the VAT.
   3. Select the Begin Date and End Date from the date choosers.
3. Select Save.

Screen Element	Description
VAT Tax Countries
Financial Company	Drop-down. This is the company associated with the VAT tax. Since the system works across companies, you must define the VAT tax at the company level to indicate that the taxes are valid for the company and location.
Country	Drop-down. This is the country associated with the VAT tax.
VAT Category	Drop-down. This is the category of the VAT tax. For example, 10%, 17.5%, or 5%.
VAT Taxes
VAT Percent	Text box. This is the percentage of VAT tax that will be levied, carried to four decimal places. Countries charge a percentage of their sales as VAT tax in the processing of their transactions.
Liability Account	Search field. The liability account used to store the VAT tax amount.
Begin Date	Date chooser. The date the VAT tax will be applied to orders.
End Date	Date chooser. The date the VAT tax will no longer be applied to orders.